Cheesecake Factory (NASDAQ:CAKE) Price Target Raised to $90.00

Key Points

• Robert W. Baird raised Cheesecake Factory’s price target from $65 to $90 while maintaining a “neutral” rating; the new target implies only 1.11% upside. The broader analyst consensus remains “Hold,” with an average target of $76.81.
• Cheesecake Factory reported strong quarterly results, including $1.44 EPS versus the $1.18 consensus and revenue of $1.03 billion, up 7.7% year over year. Management’s full-year revenue outlook of approximately $4.0 billion also exceeds analyst expectations.
• CAKE shares opened at $89.01, near their 52-week high of $89.22, with a P/E ratio of about 26. The stock’s recent rally and elevated valuation may limit room for disappointment despite improving traffic, menu innovation and marketing-driven growth.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) had its price objective raised by analysts at Robert W. Baird from $65.00 to $90.00 in a report released on Wednesday,Benzinga reports. The firm presently has a "neutral" rating on the restaurant operator's stock. Robert W. Baird's price target points to a potential upside of 1.11% from the stock's current price.

CAKE has been the topic of several other research reports. Bank of America boosted their target price on Cheesecake Factory from $66.00 to $79.00 and gave the company a "neutral" rating in a research note on Thursday, July 2nd. Morgan Stanley set a $80.00 price objective on shares of Cheesecake Factory and gave the stock an "equal weight" rating in a research report on Wednesday. Citigroup lifted their price target on shares of Cheesecake Factory from $76.00 to $90.00 and gave the company a "buy" rating in a research note on Friday, July 10th. Oppenheimer boosted their price target on shares of Cheesecake Factory from $72.00 to $91.00 and gave the stock an "outperform" rating in a research report on Monday. Finally, Argus set a $72.00 price objective on shares of Cheesecake Factory in a research note on Friday, May 1st. Five equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Cheesecake Factory currently has a consensus rating of "Hold" and an average target price of $76.81.

Cheesecake Factory Price Performance

Shares of CAKE opened at $89.01 on Wednesday. The stock has a 50 day simple moving average of $75.16 and a 200 day simple moving average of $65.29. Cheesecake Factory has a 52-week low of $43.07 and a 52-week high of $89.22. The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.53 and a current ratio of 0.59. The firm has a market capitalization of $4.42 billion, a PE ratio of 26.03, a P/E/G ratio of 2.03 and a beta of 1.01.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The restaurant operator reported $1.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.18 by $0.26. The company had revenue of $1.03 billion during the quarter, compared to the consensus estimate of $999.54 million. Cheesecake Factory had a net margin of 4.34% and a return on equity of 43.74%. The firm's revenue was up 7.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.16 earnings per share. Sell-side analysts predict that Cheesecake Factory will post 4.06 EPS for the current fiscal year.

Insider Buying and Selling at Cheesecake Factory

In other news, Director Alexander L. Cappello sold 2,490 shares of Cheesecake Factory stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $64.90, for a total value of $161,601.00. Following the completion of the transaction, the director owned 6,171 shares of the company's stock, valued at $400,497.90. This trade represents a 28.75% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Chairman David Overton sold 104,000 shares of the business's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $61.02, for a total transaction of $6,346,080.00. Following the transaction, the chairman owned 3,079,779 shares in the company, valued at $187,928,114.58. This represents a 3.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 8.00% of the company's stock.

Institutional Trading of Cheesecake Factory

A number of hedge funds have recently made changes to their positions in CAKE. Salomon & Ludwin LLC increased its holdings in shares of Cheesecake Factory by 226.5% in the fourth quarter. Salomon & Ludwin LLC now owns 604 shares of the restaurant operator's stock valued at $33,000 after purchasing an additional 419 shares during the last quarter. NFSG Corp grew its stake in Cheesecake Factory by 115.8% in the 1st quarter. NFSG Corp now owns 682 shares of the restaurant operator's stock valued at $37,000 after buying an additional 366 shares during the last quarter. Global Retirement Partners LLC grew its stake in Cheesecake Factory by 661.7% in the 4th quarter. Global Retirement Partners LLC now owns 716 shares of the restaurant operator's stock valued at $36,000 after buying an additional 622 shares during the last quarter. Root Financial Partners LLC raised its holdings in Cheesecake Factory by 973.2% in the 4th quarter. Root Financial Partners LLC now owns 880 shares of the restaurant operator's stock valued at $44,000 after acquiring an additional 798 shares during the period. Finally, Arax Advisory Partners bought a new position in Cheesecake Factory in the 4th quarter valued at about $50,000. 94.48% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Cheesecake Factory

Here are the key news stories impacting Cheesecake Factory this week:

• Positive Sentiment: CAKE reported second-quarter EPS of $1.44, well above the $1.17–$1.18 analyst consensus and up from $1.16 a year earlier. Revenue increased 7.7% year over year to $1.03 billion, exceeding expectations of approximately $1.00 billion. Cheesecake Factory Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management attributed the stronger quarter to increased customer traffic, menu innovation and marketing initiatives, suggesting improving demand at the restaurant chain. Cheesecake Factory Reports Higher Profit, Sales
• Positive Sentiment: Full-year 2026 revenue guidance was set at approximately $4.0 billion, above the roughly $3.9 billion consensus. Third-quarter revenue guidance of $980 million to $990 million also exceeds analysts’ estimate of $946 million, providing a favorable near-term outlook. Cheesecake Factory Posts Strong Q2 Growth, Reaffirms Expansion
• Positive Sentiment: Oppenheimer raised its CAKE price target from $72 to $91 and maintained an “outperform” rating, reinforcing the positive analyst reaction to the results. Cheesecake Factory Stock Price Expected to Rise
• Neutral Sentiment: The company continues to pursue restaurant expansion, including a planned Concord Mills, North Carolina location in 2026. The opening supports long-term unit growth but is unlikely to materially affect near-term results. Cheesecake Factory Is Coming to Concord Mills
• Neutral Sentiment: CAKE’s valuation has risen alongside its recent rally, with a P/E ratio near 26 and the stock trading close to its 12-month high. The strong results support the valuation, but they also leave less room for disappointment.

About Cheesecake Factory

The Cheesecake Factory Incorporated NASDAQ: CAKE is an American restaurant company and distributor renowned for its full-service casual-dining concept and specialty cheesecakes. Headquartered in Calabasas Hills, California, the company operates more than 200 restaurants under The Cheesecake Factory® brand across the United States, Puerto Rico and select international markets. In addition to sit-down dining, Cheesecake Factory franchised locations offer catering and take-out services, while a separate manufacturing arm supplies branded cheesecakes and desserts to supermarkets, hotels and other foodservice operators.

The origins of the brand trace back to a small cheesecake bakery founded in Detroit in the 1940s.

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